The week at a glance: 1 July – economics and cream
Welcome to the first instalment of the Investor’s Champions weekly business round-up. Every Friday we will bring you the biggest stories from around the world and analyse how they might impact your investments. Where better to start than with a hard look at macro-economics, served with a dash of Wimbledon sunshine.
This week at Wimbledon, Pat Cash described rogue Aussie Nick Kyrgios as akin to a car crash: you know it’s not going to make you feel good, but you just can’t help but be fascinated by it. The same is true of recent economic data.
On Tuesday, we learnt that construction activity in June fell to its weakest level for more than a decade as civil engineering, commercial and housing projects all reported a sharp fall in activity. Tuesday also brought us news that British manufacturing had fallen to its lowest level for six years, with most businesses reporting a decrease in output. By Wednesday, the service sector had added to the gloom. “The near-stagnation of the services sector in June is one of the worst performances seen over the past decade,” said Chris Williamson, chief business economist at IHS Markit.
Fears that the UK is heading towards recession have prompted market commentators to forecast an interest rate cut. It’s a…
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